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  • orthodoc2018
    replied
    Thanks for the reply. It’s not a jumbo loan but my rate is already locked and we’re closing so soon that I think I’m stuck with it.

    Leave a comment:


  • EntrepreneurMD
    replied
    What do you think is so outrageous about these fees? They don't look that bad to me at all. Anything that says "tax" next to it is absolutely non-negotiable. The fee adjustment in the last like looks pretty good. Keep in mind, they are just estimates - actual costs, like the appraisal, can be different but should be close.

    Also, depending on the lender it's not unusual to successfully negotiate the fees. I always got the application fee waived.

    Also, 30 year rates should be a little lower now unless you're looking at a jumbo loan and/or PMI is built in since it's a 0 down loan. Keep in mine you are paying an extra 20% in doc stamp taxes over an 80/20 loan as the tax is assessed on the loan amount.

    On a personal note, I'm not into 0 down loans or 30 year loans - but everyone's circumstances are different.

    Leave a comment:


  • jfoxcpacfp
    replied




    Update to this thread – getting close to closing and wanted some opinions on a couple of things.  The total costs are higher than initially estimated but this is entirely due to the prepaid taxes.

    So at this point, the loan costs including the title company which we obtained independent of the lender are fixed (total is ~$3,500).  As are the prepaid amounts for property tax and homeowner’s insurance as well as the amount due to escrow (total is ~14,000 – they want 1 year of property tax which by itself is 9k).

    That leaves two things:

    1.  Taxes – so the “Tax Stamp for State” is being assigned to the seller (~1,800) and the “Tax Stamp for County” is being assigned to me (~$4,300).  Is this how it is always done?

    2.  Owner Title Insurance – $1,800 – My understanding is that this is optional.  Is this something that most of you have obtained or should I forgo this cost?

    Thank you all in advance!
    Click to expand...


    There are so many variations of taxes when you get to state and local level and that’s what you are experiencing. At federal level (and trickling down), annual real estate taxes (again, a local creation but pretty standard) are prorated based upon the closing date and who has already paid (or will be required to) per local law.

    Miscellaneous taxes such as these are state/local creations and totally dependent the situs of the property. Many variations and flavored descriptors. Government bu11$1h1t but no way around it.....

    Leave a comment:


  • ENT Doc
    replied
    Tax stamps

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  • orthodoc2018
    replied
    Which taxes




    Holy ************************. Those taxes are absurd.

    Did not get an owner’s policy with both of my home purchases. Title insurance is an absolute waste, or at the least is overpriced. No sense in doubling the insanity.
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    Which taxes specifically?  The mortgage ones (aren't those determined by the state?) or the property taxes?

    Leave a comment:


  • ENT Doc
    replied
    Holy ************************. Those taxes are absurd.

    Did not get an owner’s policy with both of my home purchases. Title insurance is an absolute waste, or at the least is overpriced. No sense in doubling the insanity.

    Leave a comment:


  • orthodoc2018
    replied
    Update to this thread - getting close to closing and wanted some opinions on a couple of things.  The total costs are higher than initially estimated but this is entirely due to the prepaid taxes.

    So at this point, the loan costs including the title company which we obtained independent of the lender are fixed (total is ~$3,500).  As are the prepaid amounts for property tax and homeowner's insurance as well as the amount due to escrow (total is ~14,000 - they want 1 year of property tax which by itself is 9k).

    That leaves two things:

    1.  Taxes - so the "Tax Stamp for State" is being assigned to the seller (~1,800) and the "Tax Stamp for County" is being assigned to me (~$4,300).  Is this how it is always done?

    2.  Owner Title Insurance - $1,800 - My understanding is that this is optional.  Is this something that most of you have obtained or should I forgo this cost?

     

    Thank you all in advance!

    Leave a comment:


  • adventure
    replied




    Keybank mortgage in the midwest. $10-12k final costs per the closing documents… Ridiculous.

    This whole process and realtors are a moderated for colorful language (c’mon, let’s watch it, mods! ) scam. Feel like I get nickeled and dimed at every corner with this purchase.
    Click to expand...


    Agreed. Colorful language included.

    Leave a comment:


  • adventure
    replied


    TITLE – LENDER TITLE INSURANCE $1,798.00
    Click to expand...


    I loathe title insurance, and think it's a total scam. Maybe I just don't really understand it. Do we really think the title process in America is that faulty?

    I'm sure it has some value in the world, I just can't see it.

    Leave a comment:


  • ACN
    replied
    Keybank mortgage in the midwest. $10-12k final costs per the closing documents... Ridiculous.

    This whole process and realtors are a moderated for colorful language (c'mon, let's watch it, mods! ?) scam. Feel like I get nickeled and dimed at every corner with this purchase.

    Leave a comment:


  • jfoxcpacfp
    replied




    Are closing costs tax deductible?
    Click to expand...


    Points are in certain circumstances

     

    Leave a comment:


  • robaxin
    replied
    Are closing costs tax deductible?

    Leave a comment:


  • ajm184
    replied
    Yes, most of the listed items are related to the Title Insurance or stub interest/property tax expense.

    A couple of points:a. Maybe it a NY thing, but paying a year of school property taxes seems odd. To me, this tax should be pro-rata between the purchase timing of the home and when the tax is assessed.
    b. The Application Fee and Credit Report Fee are definitely bank fees. The amounts both seem rather high, $400 - $500 was number I had 5 years ago for the application fee and the credit report was like $18 for both myself and wife. I would ask the bank about these fees specifically to make them squirm a bit and see if you can negotiate these figures down (waive in the case of the credit report).
    c. Unless the R/E contract specifies buyer is responsible for seller title insurance, then this cost should be paid by the seller to be deducted from proceeds received.

    Leave a comment:


  • Lordosis
    replied




    I think the tax stamp is the mortgage recording tax.  In many counties in NY it’s 1% which is exactly as it’s quoted here.  I think in NYC it may be closer to 2% even.

    Title fees and insurance I think are relatively fixed by the state but I’ll shop around for sure just in case.  I think for inspection we’ll need overall inspection, radon testing, and termite testing.  Still waiting on the quote for that.  Seems like the prices for these things don’t vary too much and most are just the nature of the beast.
    Click to expand...


    Gotcha it was called something different here but yes we also payed 1%.  I think it was called transfer tax.

    My goal with inspections was to get the seller to knock off more money then the cost of the inspection.  I am 4 for 4!   Most sellers would rather reduce price then fix junk themselves.

    Leave a comment:


  • orthodoc2018
    replied





     
    Click to expand…


    We closed on a similar priced house in upstate NY end of last year.  Your property and school taxes seem about right. but Obvioulsy this depends on county. Not sure what that Tax stamp is.

    My appraisal was not so much but that is not going to make a huge  impact.

    The title fees and insurance seem high.  Might want to shop around for that.

     

    The inspection will be another cost and that will run about $500 or so depending on how much you need.

    Also lawyer fees are not listed.  That can run 1-2K but you can shop around for that.

    Welcome to NY!
    Click to expand...


    I think the tax stamp is the mortgage recording tax.  In many counties in NY it's 1% which is exactly as it's quoted here.  I think in NYC it may be closer to 2% even.

    Title fees and insurance I think are relatively fixed by the state but I'll shop around for sure just in case.  I think for inspection we'll need overall inspection, radon testing, and termite testing.  Still waiting on the quote for that.  Seems like the prices for these things don't vary too much and most are just the nature of the beast.

    Leave a comment:

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